Home > Uncategorized > Setting a Price for Your Product

Setting a Price for Your Product

As I’m getting close to the launch of my product, I’ve been struggling with the question of how much to charge. There are a number of models, with differentiated version-based subscription being the overall favorite for online services. However, other models do exist as well; you can charge based on percentage of spend, have a consultancy based component (which is usually more than you would charge for the product).

However, you do not want to charge too much (which would mean ‘no-deal’) and not too little (which would imply that you are leaving money on the table and which ultimately can threaten the viability of your concern).

A happy medianĀ  does exist though. If you can figure out the value that your product provides to the customer, you can charge accordingly. Even if your product is not the most sophisticated, it is worth something (as long as it does not provide negative value).

Just start charging for what you have today, and work on improving the value you provide to to customer. There is a nice 45 degree slope that you can climb, whereas as long as you provide increasing value, you can charge a higher price.

  1. No comments yet.
  1. No trackbacks yet.